The more something changes… June 23, 2008

A couple weeks ago Bluefreeway stock resumed trading. Actually that’s a bit misleading, as “trade” implies both selling and buying in fairly equal measure, and with 6 million shares hitting the market at once thanks to Macquarie bailing out, nobody was going to scoop up that much stock.

Last week Simon Chen caught up with Rick Webb, one of the founders of Bluefreeway. The chat was completely off the record, though Simon is of the opinion now that the other side of the story needs to be told.

As of Friday the share price sat just above 7 cents, which makes it worth less than a third of its former value when the stock was initially suspended from trading so auditors could figure out how deep the rabbit hole went. There are new management initiatives being put in place to try and save the company, but when they include companies buying back their own equity at the original sell price, you have to wonder how long this flight of fancy will continue to run.